Zoetis acquires VitalRADS to build AI-powered animal diagnostics

Zoetis, an animal health company, has agreed to acquire VitalRADS, a Texas-based operator of a network of radiologists who review animal imaging on a 24-hour basis. The deal marks Zoetis's second data-focused acquisition this year and reflects the company's effort to build out its animal diagnostics business using artificial intelligence.

According to Abhay Nayak, who leads US commercial operations at Zoetis, VitalRADS will help the company build AI models capable of automating much of the work currently performed by radiology technicians. The key asset is VitalRADS's database of more than 30 million images, which will serve as training data for those AI models. When discussing the rationale for the acquisition, Nayak told Semafor: "The image database would have taken us a while to build. And we also need a team of radiologists. That made it a very easy decision for us." Zoetis did not disclose the purchase price.

The VitalRADS acquisition follows Zoetis's earlier agreement this year to acquire Neogen's animal genomics business for $160 million（約260億円）. That deal included a database of genetic testing records from customers across 120 countries. At the time, Jamie Brannan, Zoetis's chief commercial officer, explained that the data would complement the software the company provides to farmers for managing their herds. Together, the two acquisitions illustrate a broader challenge facing non-tech companies: they must decide whether to build AI capabilities internally or purchase companies that have already developed them. Even companies with dedicated engineering teams recognize they need proprietary data to compete effectively, making acquisition of existing databases and expertise a strategically efficient path forward.

Zoetis's acquisition of VitalRADS reflects a strategic choice now facing many non-tech companies as they integrate AI into their operations: build or buy. The article illustrates why acquisition often wins: assembling the necessary ingredients—a proprietary database, specialized talent, and proven workflows—from scratch takes time and resources that existing companies have already invested in. VitalRADS brings both the data (more than 30 million images) and the expertise (a network of radiologists) that would take Zoetis considerable time to develop independently. By acquiring the asset, Zoetis accelerates its ability to differentiate its AI-driven diagnostic offerings in animal health.

This deal also fits into a broader pattern within Zoetis this year. The earlier $160 million（約260億円） acquisition of Neogen's animal genomics business followed the same logic: buying a database of genetic testing records from customers across 120 countries rather than rebuilding that knowledge base. Together, the two acquisitions suggest Zoetis is deliberately assembling a portfolio of proprietary datasets and domain expertise—genetic data and now imaging data—that will power its animal diagnostics AI going forward.